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Samsung Electronics CEO resigns

Oh-Hyun Kwon has been the company's CEO since 2012

The company said that it predicts strong profits for the last quarter.
The company said that it predicts strong profits for the last quarter.

Samsung Electronics chief executive officer and vice chairman, Oh-Hyun Kwon announced his shock resignation, despite strong quarterly profits forecasted. Kwon said that the resignation was down to the ‘unprecedented crisis' that is currently facing the company and that Samsung Electronics should ‘start anew'.

The crisis Kwon refers to is over the arrest and imprisonment of Samsung Electronics group's heir-apparent, of Lee Jae-yong as he was charged and sentenced to five years on bribery and corruption.

In a letter to his employees, he said: "It is something I had been thinking long and hard about for quite some time. It has not been an easy decision, but I feel I can no longer put it off. As we are confronted with unprecedented crisis inside out, I believe that time has now come for the company start anew, with a new spirit and young leadership to better respond to challenges arising from the rapidly changing IT industry."

Before announcing his resignation, the company said that it predicts strong profits for the last quarter, due to the increase in memory chip prices.

Kwon joined Samsung Electronics in 1985, and has been CEO since 2012. He will remain on the board until 2018.